{"id":1143,"date":"2022-07-01T08:01:00","date_gmt":"2022-07-01T08:01:00","guid":{"rendered":"https:\/\/aspentrust.com\/?p=1143"},"modified":"2023-01-04T15:49:47","modified_gmt":"2023-01-04T15:49:47","slug":"action-on-film-tax-incentives-in-cyprus","status":"publish","type":"post","link":"https:\/\/aspentrust.com\/action-on-film-tax-incentives-in-cyprus\/","title":{"rendered":"\u201cAction\u201d on Film Tax Incentives in Cyprus"},"content":{"rendered":"\n

A variety of film tax incentives<\/strong> has developed around the world to encourage the production of films and the expression of local stories. Although the film industry has been long established in places like Hollywood or Bollywood, global destinations provide the potential for new and interesting locations in movie production.<\/p>\n\n\n\n

Film tax incentives can be seen in a variety of formats and benefits for qualifying productions. The Aspen Trust Group<\/a> examines the various advantages of film tax incentives and the value of choosing to film in Cyprus.<\/p>\n\n\n\n

The Development of Movie Production Incentives<\/h2>\n\n\n\n

The United States has dominated the movie production industry with its unprecedented historical expansion of Hollywood. By the 1990s, movies weren\u2019t the only beloved film products. Television culture had captured the attention of a global audience.<\/p>\n\n\n\n

As the entertainment industry continued to experience rapid growth, the American film industry wondered about the impacts of \u201crunaway productions\u201d \u2013 film productions for cinema and television that were intended for the American audience yet were filmed in cheaper global destinations.<\/p>\n\n\n\n

Seeing the opportunities to capitalize on the expanding industry, Canada introduced the world\u2019s first film tax incentives in 1995 and 1997, leading to a surge of productions crossing the border to film. Studies indicated that Canada had the vast majority (81%) of film productions outside the United States<\/a>. 232 productions went to Canada just one year after the introduction of Canadian film tax incentives.<\/p>\n\n\n\n

Following the example of Canada, various U.S. states took the opportunity to establish their own incentives for film and television production. The first American state to introduce legislation for film tax incentives was Louisiana<\/a> in 2001 and 2002, and by 2009, 44 other states had implemented film production incentives.<\/p>\n\n\n\n

Yet, North America is not the only destination to find production incentives. A report by the consultants at Olsberg SPI<\/a> highlighted the vast number of countries in 2020 offering production incentives globally, with approximately 100 incentives to consider.<\/p>\n\n\n\n

Beyond Tax Incentives<\/h2>\n\n\n\n

Production advantages go beyond film tax incentives for production. Proponents of the measure lead to job creation, infrastructure and small business development, as well as increased revenue and tourism. Jurisdictions that offer production incentives gain positive byproducts and attract films that would have most likely gone elsewhere.<\/p>\n\n\n\n

During the filming processes, the production cast and crew spend locally on hotel rooms, equipment rentals, and other basic necessities during their stay. They contribute to the overall local economy<\/a> with large amounts of direct spending.<\/p>\n\n\n\n

Moreover, as the filming process takes place, infrastructure and small businesses are further developed or new ones emerge to support the production. Training and experience lead to on-the-job training on the nuances of filmmaking and aids the foundation for the area\u2019s experience for future productions.<\/p>\n\n\n\n

Beyond the basic revenue that comes with any large-scale production for its filming location, film tourism amplifies the regional investment by providing tourism marketing opportunities with fewer expenditures on the initial media marketing. Iconic locations become prime tourist destinations by movie fans and lead to greater filming interest in the future.<\/p>\n\n\n\n

The Cyprus Filming Scheme<\/h2>\n\n\n\n

Aiming to attract international producers and filmmakers and unlock the unrealized potentials of Cyprus as a production hub, the Cypriot Government introduced a package of financial incentives in its 2018 Cyprus Filming Scheme.<\/p>\n\n\n\n

Cyprus as a filming location<\/a> has the potential to become a state-of-the-art production hub with its diversity in cultural and natural filming locations, from stunning cities to scenic mountains and top-rated beaches.<\/p>\n\n\n\n

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Production categories qualifying for these incentives include:<\/p>\n\n\n\n